Business and Business Environment: Organisational Types, Functions, Structures and Business Environment Analysis

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
ORGANISATIONAL TYPES, FUNCTIONS AND STRUCTURES (TYPE 1)...........................3
P1) Different types of company and their scopes........................................................................3
P2) Discussion about the size and scope of various kinds of organisation..................................5
TASK 2............................................................................................................................................8
P3) Relationship between organizational functions and their association with objectives.........8
BUSINESS ENVIRONMENT ANALYSIS (PART 2)...................................................................9
TASK 3............................................................................................................................................9
P4) Positive and negative factors that impact the macro environment of the business operation
......................................................................................................................................................9
P5) Conduct internal and external analysis or organisation to determine strengths and
weaknesses.................................................................................................................................11
P6) Discuss how strengths and weaknesses co relate with external macro factors...................13
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The sum of all the external and internal factors is called as business environment, which
directly influences the profitability and operations. The ability to grow and maintain the business
is defined by various factors that enhances effective customer relationships. It is essential to
achieve competitive advantage in the market in order to grow the business organisation. This
helps the organisation implement appropriate strategies to overcome challenges. This report
highlights the detailed analysis of Marks & Spencers, a British retail company that deals with
clothes, home products and décor items. This company was founded in the year 1884 by Michael
Mark and Thomas Spencer. The discussion of this report also revolves around the
interrelationship of how the strengths and weaknesses affects the external environment of the of
the organisational structure of the chosen company.
TASK 1
ORGANISATIONAL TYPES, FUNCTIONS AND STRUCTURES (TYPE 1)
P1) Different types of company and their scopes
A legal entity that is run by a group of people to carries out various activities for
management and operation is called a company. The main aim of a company is operation of a
commercial or business enterprise. Some of the various types of companies are mentioned as
follows:
Private company: These types of business enterprises are owned by private entities. The main
aim of these companies is to satisfy the demands of potential customers by offering quality
services. A private company is not listed on the stock exchange and is held by the owner of the
company. There is a large amount of capital involved in the establishment of private
corporations (Henry, 2021). One such privately owned business is Marks & Spencers.
Purpose: The main purpose of Marks & Spencer is to achieve their targets by satisfying the
needs of the customers and providing quality products along with maintaining their quality and
values.
Legal structure:

 Sole proprietorship: A single individual is responsible for starting the company with a
small capital amount. The profits and risks involved in the organisational structure are
owned and managed by the owner. In this case, all the important decisions related to
marketing and production will be taken by the owner of Marks & Spencers.
 Partnership: There is mutual agreement between two partners for carrying out all the
activities of the organisation. The investment capital is divided equally which is mutually
agreed upon for starting the company (Sharma and Sharma, 2020). The profits and risks
are bore by both the parties in a partnership along with the roles and responsibilities
regarding the business.
 Corporation: These are legal form of business that involve an individual or a shareholder
that are different from the owners. These enterprises may be considered as single
business entities. Most corporates are established by charter and the corporate is held
responsible for the actions and finances of the business. The basic structure of the
corporate consists of shareholders, board of directors and officials.
Public company: These companies are mainly owned by the government and the main aim of
these companies is to serve the general public. A public company is also called as publicly traded
company. The company's assets and profits are organized by a share of stocks. A public
company is listed on stock exchange (Clatworthy and Peel, 2021). The major decisions taken by
the officials in a public company are made in the best interests of the public. The National health
care service (NHS) is an example of a public welfare company.
Purpose: The main aim of the NHS is to make efforts for the satisfaction and welfare of the
general public.
Legal structure:
 Central authority: These authorities are controlled by the government and make
consistent efforts for welfare of the common public. All the authorities are managed and
controlled at a central level.
 State authority: These authorities work at a state level for the welfare of general public.
These institutions start at a public level.
Voluntary company: These companies are started by a single individual with the main aim of
working towards the welfare of the society. The main goal of this enterprise is to work towards

improving the standard of the society. Gaining profit is not the primary motive and employees
are mostly volunteers who are interested in working for welfare of the society. Improving the
quality of lives along with charity work is the basic working in voluntary companies (Sala-
Garrido, Molinos-Senante and Mocholí-Arce, 2019). Oxfam is one example of a non profit
organisation that works towards improving the lives of public.
Purpose: the main purpose of Oxfam is contribute towards the welfare of society and also to
improve the standards of living for the poor.
Legal structure:
 Trust: One of the most important deeds that provides the individual with the authority of
property to the third party is trust. The ability to take initiative by the settler and the
trustees are involved in this process.
 Un- incorporated association: These type of business entities are mostly committed
towards commencing welfare along with a mutual agreement. These agreements involve
two or more individuals that work towards fulfilling the needs of the society in an
effective manner.
P2) Discussion about the size and scope of various kinds of organisation
There are various kinds of enterprises and organisations that operate their businesses in
the United Kingdom. These enterprises can be private, public or voluntary. On the basis their
scopes and sizes the description of Marks & Spencer, NHS and Oxfam is given below:
Businesses Descriptions
Micro There are less than 10 people employed and the annual turnover is less than
2 million pounds.
Small There are less than 50 people employed and the annual turnover is less than
10 million pounds (Langli and Svanström, 2014).
Medium In these enterprises, there are less than 250 workers and the turnover rate is
less than 50 million pounds.
Large These businesses contain more than 250 employees along the annual
turnover rate of more than 250 million pounds.